A Clause That States That in the Event of a Default

question 51

Multiple Choice

A clause that states that in the event of a default, the whole amount of the principal of the mortgage, plus accrued interest immediately falls due is

• A) an acceleration clause.
• B) a demand payment clause.
• C) a payment clause.
• D) an immediate payment clause.
• E) a quick payment clause.

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Definitions:

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stock owners, calculated as total equity minus preferred stock equity.

Prior Period Adjustments

Corrections made to a company's financial statements for errors or omissions in previously reported periods.

Revaluation Surplus

The increase in value of an asset, reflected in the company's financial statements, from re-assessing its carrying value to a higher current market value.

Treasury Stock

Shares that were issued and then repurchased by the issuing company, reducing the amount of outstanding stock on the open market.